Overview

• The cabinet convened to examine the budget framework and the Documento programmatico di bilancio, with the full 2026 bill to be finalized later this week under EU deadlines.
• The banking lobby ABI confirmed willingness to provide negotiated, multi‑year contributions while rejecting extraordinary one‑off taxes, and talks with the government continued today.
• A working option would unlock the €6.2 billion set aside by banks in 2023 by applying roughly a 26% charge to those reserves and taxing dividends, targeting about €2.8–3 billion in revenue.
• The roughly €16 billion package under discussion includes a two‑point cut to the second Irpef bracket up to €50,000, a new debt‑settlement scheme with a 5% upfront payment under review, about €2.4–2.5 billion for healthcare, family measures near €1 billion, an Isee overhaul, extensions of renovation bonuses, and selective pension adjustments.
• Political tensions persist over the size and form of bank contributions and pension changes, while in France Prime Minister Sébastien Lecornu announced the 2023 pension reform is suspended until January 2028 to secure parliamentary support.